Louisiana House Bill HCR70

Louisiana 2015 Regular Session

• Introduced: 4/22/15
• Refer: 4/27/15

Caption

Suspends all corporate income and corporate franchise tax exclusions, exemptions, deductions, and credits

Impact

If enacted, HCR70 would result in a suspension of laws concerning corporate tax exemptions and credits, directly impacting businesses registered in Louisiana. By eliminating these tax benefits temporarily, the resolution is intended to bolster state revenue during a financially challenging period. It also reflects a change in fiscal policy aimed at addressing budget shortfalls and ensuring that the government can continue providing necessary public services, showcasing a strong shift towards responses that prioritize urgent state needs.

Summary

HCR70 is a resolution that proposes to suspend all corporate income and corporate franchise tax exclusions, exemptions, deductions, and credits in Louisiana until sixty days after the final adjournment of the 2016 Regular Session. This legislation is driven by concerns over the state’s fiscal health, as the loss of revenue from these tax benefits has been deemed critical in maintaining essential services for Louisiana citizens. As economic challenges continue to threaten state funding, the resolution aims to reevaluate tax benefits that significantly impact the state’s revenues.

Sentiment

The sentiment surrounding HCR70 appears to be mixed, with recognition of the necessity for increased revenue amid financial pressures. Supporters view the resolution as a pragmatic and necessary step toward stabilizing the state's budget, while there may be concerns from business representatives and advocacy groups regarding the removal of these tax benefits. The balance between maintaining economic growth and addressing immediate fiscal needs is a central theme in the discussions surrounding this resolution.

Contention

Notable points of contention include the potential backlash from the business community, especially from corporations that benefit from the existing deductions and credits. Critics may argue that suspending these tax benefits could disincentivize business investments in the state, thereby negatively affecting economic growth. Moreover, the suspension could lead to increased tension between lawmakers who prioritize financial stability and those who advocate for continued support for local businesses through tax relief.